1.) A, B, and C formed a partnership to continue for a term of five (5) years. On the third year, C sold his entire interest to D.

a. Is the partnership dissolved?why?

b. Can D be considered a partner?why?

2.) A, B, and C were partners. A informed B that the former was resigning or withdrawing from the partnership.

a. Is the partnership dissolved?why?

b. If C has no knowledge of the dissolution and partnership liability is incurred by a contract entered into by C, are A and B bound to contribute to the liability?why?

c. if C, with knowledge of the dissolution, entered into a contract, will A and B be bound to contribute to the liability?why?

3.) T purchased goods from a partnership. Thereafter, the partnership was dissolved. Notice of the dissolution was advertised in the local newspaper. Without knowledge of the dissolution, T thereafter extended credit to the supposed partnership at the request of one of its members in connection with a transaction not necessary for the liquidation of the business. May T hold the partnership liable on the transaction?why?

4.) A, B, and C, are partners. A contributed P150,000.00, B P100,000.00, and C, P50,000.00. On dissolution, the assets of the partnership amounted to P500,000.00. The partnership owes D the amount of P70,000.00, E, P50,000.00, and A, P20,000.00.

a. Using the above situation, explain how the accounts of the partnership will be settled.

b. Suppose, in the same situation, the liabilities of the partnership amount to P560,000.00. how will the account be settled? How much will the partners contribute, if any?

5.) Assume that C is admitted as a new partner into the existing partnership of A and B.

a. What happened to the partnership of A and B?

b. Will C be liable to debts incurred by the old partnership?why?